UA-R-GC-1914-01-01-1985-05_Page-010

faculty getting higher increases. Almost 50% of AUC compensation goes to faculty members (full professors taking about 18% and instructors about 16%). Staff (secretaries, accountants, purchasing people, etc.) take about 26%, custodian~' 10%. While there is no commitment to keeping them at any comparative U.S. levels, they tend to suffer inflationary effects more than others, and we will again be recommending substantial percentage increases for them. Administrators, who are generally better protected because of higher dollar components, will again have lower percentage increases. The anticipated faculty increases will not quite get us back up to average, especially as a further drop in the value of the pound will again decrease dollar-dominated income, significant scale increases can therefore be expected next year as well. FUND RAISING The most important development in fund ralslng since the last meeting has been in the prospect for a US pound endowment. AID, State and th~ Embassy are working in this direction, and congressional staff and committees are urging the Administration to move forward. Concretely two approaches are currently underway: (1) Senator Kasten has raised with the Egyptians, through the Embassy, his interest in having AUC receive LE 50 million in counterpart funds in connection with a $500 million supplemental appropriation for cash transfers to Egypt. He does not yet have their reaction. The House Foreign Affairs Committee has supported the idea of a pound endowment for AUC from the Commodity Import Program as other means, but not from Title III (which was favored by Mr. McPherson). The Committee would undoubtedly go along with Senator Kasten's approach, which links CIP to cash transfers. (2) The Embassy is urging that what is known as "the butter money" be made available to AUC on a long term no-interest loan sufficient to generate a LE 50 million endowment. (By the end of next year the Embassy expects to receive LE 83 million as payment for butter sales to Egypt. The pounds are to be used to pay for Embassy expenses. But the Embassy has enough pounds for that purpose from what is called Currency Use Payments. Giving the money to us would require a dollar appropriation and probably therefore not get out of the Administration. The loan approach is therefore being explored in hopes appropriations can be avoided, or that, if necessary, an appropriation for a loan might be politically different than one for a grant.) Either of these approaches would be fine from our point of view, though the "butter money" approach would be better because the pounds clearly belong to the US. - 3